Colliers Retail Middle Market completes second Neighbourhood Shopping Centre sale in Perth within 12 months, reaffirming national buyer confidence.
Purchaser depth for the Neighbourhood Shopping Centre sector is growing with increasing activity from Sydnicators. Colliers leverage its national Retail Middle Markets platform to connect capital that ultimately secured the successful sale of Brighton Village to Trilogy Funds for $25.3 million on behalf of valued client ISPT. The transaction was managed by Colliers’ James Wilson and Richard Cash.
Trilogy Funds Head of Direct Property, Laurence Parisi, noted the acquisition of Brighton Village is a compelling seed asset for the newly launched Trilogy Essential Retail Fund (the Fund). “The Fund’s strategy centres on essential, high-utility retail assets that consumers depend on routinely, which continue to show consistent demand and deliver resilient performance across economic cycles,” Mr Parisi said.
“Brighton Village ticks all the boxes in terms of our focus on properties strategically located across Australia that deliver reliable income and long-term capital growth potential, underpinned by stable cashflows, resilient tenants and fixed rental uplifts.”
Anchored by a high-performing Coles on a rare 20-year lease with additional tenant options, the acquisition by an Eastern Seaboard syndicator underscores the sustained demand for neighbourhood retail centres.
James Wilson, Colliers Head of Retail Middle Markets, Australia, said, “The Expressions of Interest campaign attracted over 140 enquiries, including capital from both the West and East Coasts, as well as offshore institutional investors, syndicators, and Family Offices. In total, the campaign generated over $160 million in unsatisfied capital from underbidders targeting this asset class. This depth of demand highlights the strong investor appetite for prime-grade shopping centre investments.”
Richard Cash, Colliers State Chief Executive, Western Australia, added, “Colliers Retail Middle Markets has transacted 11 neighbourhood shopping centres nationally over the past 12 months, with a combined value of approximately $300 million. Year to date, 33 neighbourhood centres have transacted across Australia, up from 25 in the first half of 2024.”
“As the cost of debt continues to ease, we’re seeing renewed buyer activity from syndicators, re-entering the market and adding competitive tension to campaigns that have recently been dominated by high-net-worth family offices and institutional capital.”
Brighton Village marks Colliers Retail Middle Markets’ second neighbourhood shopping centre transaction in Perth in the past 12 months, reflecting growing engagement from national buyers across the platform. Western Australia continues to outperform, recording the strongest population growth nationally at 2.4% in the year to June 2024. These fundamentals are driving increased investor interest in WA retail, supported by tight supply, strong occupancy, and resilient local spending.
The centre offered a compelling investment profile, with average specialty rents currently 50% below the Urbis benchmark, presenting significant reversionary potential. Fully leased, with 88% of gross income and gross lettable area (GLA) secured by national tenants, the asset provides strong covenant strength. It also benefits from a long WALE of over seven years (by both income and GLA), underpinning income stability. The main trade area (MTA) is forecast to experience robust population growth of 2.5% per annum, more than double the Greater Perth benchmark, supporting long-term retail demand.
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